The Mobilehome Park Resident Ownership Program (MPROP), enacted in 1984 (SB 2240, Seymour), is administered by the Department of Housing and Community Development (HCD). MPROP offers loans to homeowner organizations and low-income park residents to help finance conversion of mobilehome parks to resident ownership.
Detailed information is available at www.hcd.ca.gov/fa/mprop/ or at (916) 445-0110.
Purpose: There are 4,822 mobilehome parks in California providing housing to approximately 800,000 or more residents, many of whom are low and moderate income families and seniors. Over the years, rents have increased in many parks to the point where some low-income residents fear economic eviction. Other parks have closed to make way for new development, such as hotels or shopping centers, resulting in the loss of affordable housing and physical displacement of some residents. Many of these residents cannot afford to move their homes to another park, vacancies in most parks are rare, and many parks will not accept older mobilehomes even if there are vacant spaces available. Hence, where resident or non-profit purchase of the park is an option, MPROP funds, where available, help to preserve affordable “at-risk” housing.
How MPROP Works: MPROP does not fund the full cost of a conversion to resident ownership. MPROP basically provides homeowners’ associations 3% simple interest loans and shorter-term “bridge” loans for costs of park conversions, and long-term loans up to 30 years for individual low-income residents (defined as households with up to 80% of median income for the area). Two-thirds of the park residents must support resident ownership of the park in order for a conversion to be eligible for MPROP funding. Payments for some low-income individuals may be deferred. Individual homeowners who do not qualify for MPROP must secure their own private financing. But MPROP indirectly benefits them as well. By providing conversion and “bridge” loans and individual low-income loans, MPROP often provides the needed margin of financial support necessary to assure that a combined financing package will work to maintain a successful conversion. In 1999, the Legislature also broadened the scope of MPROP to allow qualified non-profit housing and local government sponsors to be eligible for funding if at least 30% of the spaces in a proposed mobilehome park are occupied by low-income households.
How MPROP is Funded: MPROP is funded by an annual $5 surcharge on mobilehome owners, who are subject to state vehicle license fees (VLF), and revenues from MPROP loan repayments, which totals about $3 million in funding a year.
MPROP Parks: As of December 2006, MPROP has helped to fund 74 mobilehome park conversions over 21 years – parks with approximate total of 12,000 lots. Over 3,000 of those spaces are occupied by “low-income” residents.